1-5% of the population is psychopaths, without any emotions, who willing to do whatever it needs to achieve that he / she wants, regardless of anything.

The lawbooks exist mainly due to them.

They usually gravitate to the highest level of positions in every county, like politician , doctors, policeman, high managers.

Means that if there is an opportunity, or bad oversight in any country then they will use it up.

And I am sure about that the Chinese banking system has a lot more mark-to-fantasy loans than anyone experienced during the 2000s in the USA.
Again, transparency, information, quality and quantity of data.

All the more reason why it is a self-defeating crisis when a country such as the US, a lynchpin of the international financial system, allows people and organizations who committed deplorable things against the public good of the country and the world to practically get away scot free, not to mention continue catering to them and their schemes. This is independent of the nature of psychopaths or how other countries compare.

We will see more and more of these
Gree Electric Appliances, a leading air-conditioner maker in China, has invested $160M to establish a chip R&D company, according to a report by The Paper. The company spends almost $640M a year buying imported chips, which AC makers in China are unable to produce domestically.

I pointed out few times: China used to be more prosperous than Europe for thousand year(s).
In the twenty century the Chinese was more wealthy than ever, but they was poor compared to the Europeans .
Anyway, the Chinese government choose the easy way, and created serious imbalances in the economy, as shown in the above graphs.

It goes back to the original pettis/shanghai composite discussions : quality data about companies creating transparency and light, and these guys can not survive in light for long time : )

Keep on telling yourself whatever you want to believe while the rest of us live in the real world

I pointed out few times: China used to be more prosperous than Europe for thousand year(s).
In the twenty century the Chinese was more wealthy than ever, but they was poor compared to the Europeans .
Anyway, the Chinese government choose the easy way, and created serious imbalances in the economy, as shown in the above graphs.

It goes back to the original pettis/shanghai composite discussions : quality data about companies creating transparency and light, and these guys can not survive in light for long time : )

Do you even know what you are arguing about? You throwing nonsense just for the sake of arguing. European and the West today brought in African slavery to do their cheap labor bidding under colonial land they still haven't even created a more economic Utopian society that compare to China today or back than.

China doesn't recovered from the 1997 crisis , just dumped everything under the rug.

The 10% transfer of GDP from household to corporate/wealthy happened to allow the "recovery" without any economical reform.

China hasn't recovered from the hit since.

Just for reference the USA consumption:

Your graph is stupid and doesn't say what you want it to say. That's consumption as a percentage of GDP. China's spending has grown faster than American spending, but its GDP has grown much much faster than American GDP. Basically, in China's situation, it's showing GDP growth so quick that consumption can't catch up, like if you already live a pretty fulfilling life but your boss keeps doubling your salary every year and you can't think of what you want to buy with the extra money. Now the US chart just shows Americans cutting deeper and deeper into their savings to spend and buy things. I can spike that chart for myself personally if I went to the mall tomorrow and maxed out my credit card with no change to my income. Guy A: earning so much money he can't spend it fast enough even though his spending is rising among the fastest in the world. Guy B: spending more and more of his income and saving less and less. And you say the first guy is the one with the problem? LOL Like I said before: you think you're an economist but you can't even read a chart...

Registered Member

Your graph is stupid and doesn't say what you want it to say. That's consumption as a percentage of GDP. China's spending has grown faster than American spending, but its GDP has grown much much faster than American GDP. Basically, in China's situation, it's showing GDP growth so quick that consumption can't catch up, like if you already live a pretty fulfilling life but your boss keeps doubling your salary every year and you can't think of what you want to buy with the extra money. Now the US chart just shows Americans cutting deeper and deeper into their savings to spend and buy things. I can spike that chart for myself personally if I went to the mall tomorrow and maxed out my credit card with no change to my income. Guy A: earning so much money he can't spend it fast enough even though his spending is rising among the fastest in the world. Guy B: spending more and more of his income and saving less and less. And you say the first guy is the one with the problem? LOL Like I said before: you think you're an economist but you can't even read a chart...

You made a quite nice salad bowl piling up unrelated things.
Check the correlation between the negative interest rate on savings, and the decreasing consumption.
Considering that prior of 201X the Chinese household hasn't got significant debt but they had savings the negative interest rate was a transfer mechanism from the households to the banks/SOEs to recapitalise them.
They used this money first to make export capacity, second to create a huge infrastructure driven economy.

Basically, in China's situation, it's showing GDP growth so quick that consumption can't catch up, like if you already live a pretty fulfilling life but your boss keeps doubling your salary every year and you can't think of what you want to buy with the extra money.

So, you saying that the reason why the Chinese doesn't spend money because they salary growing faster than they consumption?
I think if it is the case then you can expect to see the savings of the households going up.
But if I check the above graph it showing the opposite.
The Chinese household needs loans to reach the expected level of living.
Without wasting too much time , don't you think that the three graph ( real interest rate, household share of GDP , household debt) showing a different, and very sorry story about the current state of the Chinese consumers?

So, check the second part of your reasoning, the US consumer who has to go deeper and deeper into the debt.

About Us

SinoDefenceForum.com community offers the place to discuss strategic Chinese defense, military, military hardware, defence technology and geopolitical issues! We pride ourselves on offering unbiased, mature, and critical discussion among people of all different backgrounds.